Microsoft's 3 Biggest Mistakes

Microsoft entered the video game console business in 2001 with the Xbox. Today, they are still a major player in the industry. But it hasn't exactly been a smooth journey. Here are three of their biggest blunders (so far).

CHAPTERS
00:00 - Introduction
02:02 - Games for Windows LIVE
11:58 - The Xbox One Announcement
18:35 - The Xbox 360 "Red Ring of Death"

Follow Gaming Historian:

#GamingHistorian #3BiggestMistakes #Microsoft

[GamingHistorian]

Atari next? Would love to hear your suggestions. Thanks!

[AlexTenThousand]

You forgot one thing about the Xbox One's "always online" announcement: at first, Mattrick's response was quite literally "Fortunately we have a product for people who aren't able to get some form of connectivity, it's called Xbox 360".

[rig-zag]

I remember looking up the "towel trick" fix for the red ring of death issue when my first 360 finally broke in 2011. If you wrapped a towel around the console and left it on for a couple days, intentionally overheating the unit to essentially repair the broken connection by melting it back together. This actually worked for awhile.

[AVGNROCKS]

The Xbone reveal still flabbergasts me to this day. Don Mattrick should get pension for being the greatest PlayStation salesmen of all time.

[Joker]

It was absolutely backbreaking to Microsoft when Sony displayed their "sharing policy" at E3.

"Here you go"

"Thank you"

Watching it live was awesome.

[KidsRocks]

My favorite part about Xbox One’s focus on TV is that streaming sticks were also first being released around this time, meaning that Microsoft was driving off their gaming audience to focus on a TV audience that had no reason to get an Xbox when they could just get a Chromecast or a Roku Stick for a fraction of the price.

[carhurmore]

I'd love to see a three biggest mistakes of Konami! They've definitely gone away from being a highly revered game company and would be a good shake up to the formula by covering software manufacturers.

[netako]

The PS4 announcement and the simple, yet effective “$299” on the PS1 keynote in response to the $399 price point of the Sega Saturn are the greatest beatdowns from Sony.

[thisguy]

The Always Online announcement was so tonedeaf and stupid that I had been fully prepared to walk away from all future home consoles, if Sony had followed suit. Sony's E3 beat down on Microsoft is one of the greatest industry moments of all time. You could hear it in the cheers of the crowd, like a terrible weight was being lifted from the shoulders of everyone in the room.

[chocolocojames]

I remember working at GameStop during the sale of the 360. I had returns almost immediately. We were so baffled at the time.

[colddripgaming]

I had mentally blocked Games for Windows Live from my memory, thanks for that Norm.

The DRM they used was so poorly implemented that I had to resort to pirating games I bought legitimately as it was the only way to play the game. It was eventually scrapped and done right with Xbox at least.

[thecianinator]

I had a friend who worked at Gamestop during that E3. When Xbox One and PlayStation 4 pre-orders opened, they sold every PS4 pre-order. They got zero Xbox One pre-orders. A few days later, Microsoft walked back their always online demands.

[ComicsCloset]

I actually was at E3 2005 and 2006 when a lot of this stuff went down. Microsoft also sent me retail and debug Xbox 360 at the beginning of the console and BOTH RROD'ed! The Games for Anywhere thing I remember actually going into a back room with the guy that was in charge of it and trying it out, it was a neat concept that was working on some of the more advanced phones at the time such as the Motorola Q, but yeah that part of it never really got anywhere.

[SoundsideSherry]

I feel like "Atari's 3 Biggest Mistakes" is the natural next choice, but I'd like to suggest NEC as a potential subject.
Although they only produced two consoles (the PC Engine/TurboGrafx-16 and the PC-FX), their partnership with Hudson Soft in the 80s/90s transition had a lot more potential than many would assume. Had they handled the PC Engine's overseas launch differently (especially in Europe), not rushed the PC Engine SuperGrafx in Japan, and/or not gone lukewarm with the PC-FX's specifications, they could have been around for at least another generation.

[ChaoticMeatballTV]

Very well done video, would love to see this 3 Biggest Mistakes series continue onto development companies too, like Capcom and Konami. I wonder if you can get down to just 3 on those two.

[thisisnotachannel]

Their biggest mistake for me was rushing out a defective console (360) just to get out in the market ahead of Sony.
3 red ring incidents, and 3 absolutely ridiculous hassles trying to get them repaired or replaced is my Microsoft experience. After the third time they REFUSED to do anything further. So I sold a broken 360 at a pawn shop. Got 25 dollars for it.
I haven't bought a microsoft product since... this was 2006.
Also, online was FREE on PS3.

[dstinnettmusic]

Atari seems like a good choice for a “biggest mistakes” episode.

This is also a good place for discussion on the American Video Game Crash and parallels that can be drawn between that era and the modern era of gaming.

[GavinAstraWolf]

I remember always being scared that my 360 was gonna get the red ring back in the day. There were so many rumors in my middleschool of what caused it.I can't believe it was an over cooling and heating problem this whole time. Glad I had a newer 360 (which I didn't know at the time).

[Goat-on-a-Stick]

That was well done. I don't care what console you cover next, I'll watch it!

[Mankey]

The infamous Red Ring of Death is definitely one of Microsoft’s biggest regrets ever made when it comes to early release. I remember those moments when my 360 got that dreaded rings.